Nigeria’s Efforts to Attract Foreign Investors in Mining Industry

Nigeria is actively seeking increased foreign investment in its mining sector, with a key focus on reducing production costs and cultivating a more favourable business environment. This objective was prominently featured at the Mines & Money Conference in London, where Oladele Alake, Nigeria’s Minister of Solid Minerals Development, delineated the country’s distinct advantages and recent policy reforms.

The minister reported a substantial upsurge in Nigeria’s mining sector’s contribution to GDP, from 0.3 per cent to 0.85 per cent last year, indicating a noteworthy year-on-year growth of 0.63 per cent. He underscored the abundant mineral resources present in the country, with over 44 distinct mineral types available in exploitable quantities across more than 500 locations. Particularly noteworthy is the inclusion of Lithium as a strategically crucial mineral of global significance, reflecting Nigeria’s response to emergent global trends.

In his address to international stakeholders in the mining industry, Mr Alake stressed the government’s unwavering commitment to streamlining procedures and reducing barriers to attract foreign investors. He also presented recent advancements, including the Airborne Geophysical Survey, a memorandum of understanding with the German firm Geoscan, and a new funding facility established by the Africa Finance Corporation and the Solid Minerals Development Fund to enhance access to finance for mining projects.

Emphasizing the importance of beneficiation and value addition in solid minerals as a means to cultivate sustainable growth in the mining industry, create employment opportunities, and increase the sector’s contribution to the nation’s GDP, the minister urged investors to support the socio-economic development of mining communities. He also highlighted the revised guidelines for the Community Development Agreement, which aims to provide essential social amenities, educational support, and environmental facilities.

Reflected in these initiatives is Nigeria’s determination to establish itself as an appealing destination for mining investment, demonstrating the government’s commitment to fostering a conducive business environment and ensuring that mining operations benefit local communities.

Through these concerted efforts, Nigeria endeavors to further fortify its mining sector, attract foreign investors, and ultimately contribute to the country’s economic growth and development.